First Berlin Reaffirms Buy Recommendation for Knaus Tabbert AG

First Berlin Equity Research GmbH has released a report on Knaus Tabbert AG, maintaining its Buy rating and a target price of €29. Despite weak Q1 results compared to the previous year, strategic initiatives have shown positive signs. Improvements in working capital have released €15 million in free cash flow, offsetting initial operational challenges.

The management's confirmed guidance, with expected sales around €1 billion and an AEBITDA margin between 5.0% and 6.5%, suggests potential earnings growth in upcoming quarters. While further optimization of the balance sheet is necessary, these initiatives are steering the company in a promising direction. The expectation is to realize the revamped business's potential later this year.